ECON 010 Chapter Notes - Chapter 10: Interval Estimation, Sampling Distribution, Mean Absolute Difference
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There are times when the difference between the means of two populations may be of interest. Consider the following example, suppose the career center at ucla wants to compare the average starting salary of recent engineering graduates with the average starting salary of recent business school graduates. Rather than contacting every recent graduate, ucla plans to select an independent random sample of 100 recent engineering graduates and 100 recent business school graduate. Definition: independent random samples are samples selected from two populations in such a way that the elements making up one sample are chosen independently of the elements making up the other sample. From the results of this sample, the career center intends to estimate the different in average starting salary for the two populations. Suppose ucla"s sampling produces a sample mean salary of. 1x =,508 for the sample of 100 engineering students, and a sample mean salary of graduates. 2x = ,392 for the sample of 100 business.
